Abstract: A magnetoresistive material with two metallic magnetic phases. The material exhibits the giant magnetoresistance effect (GMR). A first phase of the material includes a matrix of an electrically conductive ferromagnetic transition metal or an alloy thereof. A second precipitate phase exhibits ferromagnetic behavior when precipitated into the matrix and is antiferromagnetically exchange coupled to the first phase. The second precipitate phase can be electrically conductive rare earth pnictide or can be a Heusler alloy. A method of manufacturing magnetoresistive materials according to the present invention employs facing targets magnetron sputtering.